At a Glance
Brigade Enterprises, the south-Indian real estate juggernaut, has quietly compounded profits at 40% CAGR over the last 5 years. With ₹5,074 Cr in FY25 revenue, ₹680 Cr profit, and ₹22,000 Cr assets on books — it’s no longer just building buildings. It’s building empires. But is the ₹28,000 Cr valuation justified?
🧱 1. Brigade, The OG Bengaluru Builder
Before “luxury” meant green glass and Italian tiles, Brigade was building residential, commercial, retail, and hospitality projects across the South.
- 🎂 Founded: 1986
- 🏙️ HQ: Bengaluru
- 📐 Projects delivered: 280+
- 🧱 Total area developed: 86+ million sq. ft
- 🛏️ Verticals: Residential, Office, Malls (Orion), Hotels (Sheraton, Holiday Inn)
- 📈 Listed entity: NSE: BRIGADE, BSE: 532929
They’re also behind BuzzWorks, a flex-office brand, and operate malls like Orion Mall – the OG “aesthetic” mall of Bangalore.
📊 2. Financial Recap: FY21-FY25
| ₹ in Cr | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue | 1,950 | 2,999 | 3,445 | 4,897 | 5,074 |
| EBITDA | 476 | 770 | 866 | 1,202 | 1,414 |
| Net Profit | -96 | -65 | 222 | 401 | 680 |
| Net Debt | 5,005 | 4,906 | 4,634 | 5,470 | 5,464 |
| EPS (₹) | -2.2 | 3.59 | 12.63 | 19.54 | 28.06 |
✅ FY25 saw 70% YoY profit growth
❌ Debt still over ₹5,400 Cr — a concern given rising project costs and land acquisitions
🧠 3. What’s Driving This Growth?
- 🧱 Residential demand revival: Brigade sold over 4.3 mn sq.ft of new homes in FY25
- 🏢 Commercial leasing recovery: Office spaces + BuzzWorks occupancy improved post-COVID
- 🛍️ Retail bounce-back: Orion Malls are back to pre-COVID footfalls (and F&B spends 💸)
- 🏨 Hospitality revival: Hotel segment finally profitable again thanks to biz travel & weddings
And they just announced a ₹2,100 Cr Morgan Heights launch in Chennai, adding 2.2 mn sq.ft to the kitty.
🔍 4. Key Ratios & Trends
| Metric | Value |
|---|---|
| ROCE FY25 | 13.4% |
| ROE FY25 | 14.6% |
| Debt/Equity | ~1.0x |
| Inventory Days | 4,134 😵 |
| OPM | 28% |
| Promoter Holding | 41.1% (stable) |
| FII Holding | Up from 13% → 20.2% in 2 years 📈 |
👉 ROCE improved, but inventory levels and debt still raise eyebrows. Real estate is capital-hungry, yes, but this is pushing it.
🧠 5. Valuation Check: Is Brigade Overbuilt?
Let’s check Brigade’s valuation vs peers:
| Company | Mcap (₹ Cr) | P/E | ROCE | Gearing |
|---|---|---|---|---|
| Brigade | 27,977 | 41.1x | 13.4% | ~1.0x |
| DLF | 2,11,453 | 46.2x | 6.5% | ~0.2x |
| Macrotech | 1,48,015 | 53.6x | 15.6% | ~1.0x |
| Oberoi | 69,481 | 32.1x | 17.7% | ~0.3x |
📉 Brigade trades cheaper than Lodha and DLF in absolute Mcap terms, but its P/E is still lofty for a company with ₹680 Cr profit.
💰 6. Fair Value Range (FV Estimate)
Let’s value it conservatively based on FY25 EPS of ₹28.06 and two scenarios:
| Basis | P/E | FV |
|---|---|---|
| Cautious | 30x | ₹840 |
| Optimistic | 40x | ₹1,120 |
🎯 Fair Value Range: ₹840 – ₹1,120
(Current Price: ₹1,145 = fully priced in, maybe even a tad frothy)
🧨 7. Risks to Watch
- 🏗️ Project delays = Revenue recognition gets pushed out
- 🧾 Debt servicing = Any rate hike or slowdown can sting
- 🧱 Inventory glut = 4,000+ inventory days means capital is stuck
- 🧨 Sector re-rating risk = If RE stocks cool off, high P/Es like Brigade’s will compress
📦 8. Final Brick in the Wall: EduTake
Brigade isn’t just a real estate company anymore — it’s a full-stack urban infrastructure play with homes, offices, hotels, malls, and even co-working spaces.
It has momentum, it has assets, and it has FII love.
But it also has:
- High debt,
- Slowing topline in recent quarters, and
- Valuation that assumes nothing can go wrong.
🏗️ Brigade’s story is still being built. But with a stock already priced near its optimistic FV, the upside may be limited — unless it starts delivering ₹1,000+ Cr profit in FY26.
✍️ Written by Prashant | 📅 June 22, 2025
Tags: Brigade Enterprises, real estate stocks, Bangalore developers, Indian property market, Nifty Realty, FY25 results, Orion Mall, BuzzWorks, Brigade Group stock analysis
